ASIC has explained the reasons for its recent decision to cancel both the Australian financial services (AFS) licence and Australian credit licence of Morrison Carr Financial Services and permanently ban the sole director of Morrison Carr, Mr Dennis Cardakaris from providing financial services and engaging in credit activities.
The decision to cancel Morrison Carr’s licenses and permanently ban Mr Cardakaris followed a surveillance of the business commencing in October 2011.
ASIC was concerned Mr Cardakaris was not of good fame and character given evidence he provided false information to its insurer and took steps to avoid client claims.
Specifically, ASIC said it took this action on the grounds that:
- Morrison Carr did not have in place adequate compensation arrangements;
- Mr Cardakaris was not of good fame and character or a fit and proper person to engage in credit activities in that he provided false information in relation to an application for professional indemnity insurance and arranged for the transfer of business from a previous AFS licence, Morrison Carr Australia and in doing so, affected the ability of claimants of the previous licensee to pursue their claims;
- ASIC has reason to believe that Mr Cardakaris will not comply with financial services laws; and
- Mr Cardakaris has been involved in the contravention of credit legislation and ASIC has reason to believe that he is likely to contravene credit legislation.
Mr Cardakaris has the right to seek a review in the AAT of ASIC’s decision to permanently ban him from providing financial services and engaging in credit activities.
